Why agriculture?
Robust long-term fundamentals
Rising demand for protein-rich foods and declining-supply of arable land per capita are likely to drive farmland values over the long run.
Nature-based solutions
Agriculture can contribute to climate solutions through carbon sequestration, creating a substantial decarbonisation and revenue opportunity for farmlands.
Healthy historical returns
Australian agriculture has historically delivered equity-like returns at bond-like volatility.
Inflation hedge properties
Our analysis of historical data, and the tight link between inflation and farm revenues, suggests the asset class may be well placed to act as an inflation hedge.
Diversification benefits
Adding agriculture to a pre-existing portfolio of global equities, bonds, and property could increase portfolio returns and lower portfolio volatility.
1Based on Preqin database, data as of September 2021.